Carlson Wagonlit Travel (CWT) has warned of escalating travel costs in Asia over the next year as demand continue to surge despite global economic uncertainty.
The business travel specialist has released its 2012 Travel Price Forecast, which projects supplier prices for airlines, hotels, ground transportation providers, and meetings and events (M&E) spend. CWT’s analysis confirms that prices in most geographic areas and for most categories of spend are expected to rise in 2012. However, these projections are somewhat tenuous given the volatility and uncertainty prevalent in the global economic climate.
In spite of the uncertainty, Asia’s is still thriving, leading the way in many economic indicators and in business travel volumes. CWT expects this growth to slow somewhat, with APAC travel prices flattening in 2012 on a quarter-over-quarter basis.
Airline pricing in APAC is tipped to increase by 3.1-3.8% in 2012 as a dynamic mix of legacy airlines and a growing group of low-cost carriers compete for travellers, holding down fares in the region.
Average daily hotel rates in APAC will vary geographically. Prices may exhibit a 1.9% decrease to a 2.1% increase in the first half of 2012, and a 0.9% decrease to remaining flat for the second half of the year. APAC’s business hubs currently boast the highest occupancy rates in the world, which will present travellers with continued challenges in securing available rooms. This hot demand for beds, however, will be offset by strong supply, which will help subdue rate increases in the region.
Nick Vournakis, Vice President of CWT Solutions Group, said; “